not sure if I understand correctly but would that be like if someone put up an antenna and uplinked the channel to a server somewhere so they could store/redistribute it? Get people all over to get every channel and then have access to all of them?
No, each customer has their own antenna and private virtual storage.
Cablevision won the private virtual storage lawsuit last year (it was fought all the way to the Supreme Court where the appeal of the broadcasters was denied). Cablevision now has DVR service in the central office where each customer can have their own storage space, so if 1000 people record Saturday Night Live there are 1000 separate copies in CVC's data warehouse.
So, now these guys are taking the next step saying that since having a central DVR and transmission has been found to be legal, hooking this up to a private antenna should make it legal to use OTA programming.
They hired the same lawyer CVC used to win their case last year
Aereo hires Cablevision attorney for copyright battle with broadcasters - FierceCable
They appear to have deep pockets. It is an important case to win. If they win IPTV will have a major step forward with providers being able to offer local channels. The interesting twist is since they are using OTA antennas they do not have to pay the fees that the cable and satellite now pay. They are not commercial retransmitters, they are just leasing a dime sized antenna and an internet server to private individuals to do with as they wish. Just like if you put up an antenna at your house and had a DVR and sling box.